💼 When it comes to home loans, it seems people are keeping a close eye on interest rate trends. The latest data from the Australian Bureau of Statistics shows a massive shift in borrower preferences, with 98% of new loans in August 2024 being variable and only 2% fixed.
📉 Back in August 2021, things were quite different. Interest rates were at record lows, leading 46% of borrowers to fix their rates, anticipating an eventual rise. Fast forward to today, with rates believed to have peaked, most borrowers are choosing variable rates, hoping for potential rate cuts from the Reserve Bank of Australia.
🔍 Here’s a quick look at the pros and cons of each:
🔒 Fixed Loans
Predictable: Keep your monthly repayments steady throughout the fixed term.
Peace of Mind: You’re protected if rates rise – but miss out if they fall.
📈 Variable Loans
Flexible: Repayments change as interest rates fluctuate.
Opportunity: Potentially lower repayments if rates go down.
At Sunny Finance, we can help you find the right loan that aligns with your financial goals. 🌞 #HomeLoans #FinanceTips #InterestRates
Please follow and like us:
Why 98% of borrowers are choosing variable rates?